EPA Releases RIN Market Proposal

EPA released a proposed rule that would allow E-15 to be sold year-round (subject to certain restrictions) and also impose significant reforms in how RIN markets function. Although NATSO considers the RIN market reform component of the rulemaking unnecessary, EPA appears to have responsibly distinguished between ethanol RINS and RINS associated with advanced biofuels such as biodiesel.

NATSO is continuing to analyze the proposal and will provide a more fulsome analysis in the coming days.

NATSO, the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers of America (SIGMA) sharply criticized the proposal in a statement to media. Rather than enhance RIN market transparency, the groups said the proposed changes will create chaos in the RINs market, reduce incentives for fuel retailers to incorporate renewable fuels into the fuel supply and depress demand for biofuels.

“EPA’s proposal would remove many existing incentives to sell biofuels and would act as a penalty for fuel marketers that want to blend those fuels,” said NATSO Vice President of Government Affairs, David Fialkov. "The ‘reforms’ that EPA is exploring were conceived by the same refining companies that for years have been trying to undercut the RFS in order to avoid investing in renewable fuels. The changes are not designed to ‘enhance RIN transparency’ but rather to depress demand for biofuels so that a small subset of refiners can spend as little as possible to meet their obligations.”

NATSO thinks that RIN market volatility is caused by policy announcements, rumors and news reports rather than an underlying flaw in the RIN markets themselves, as evidenced by NATSO’s “RIN Market Volatility” Chart. Steady, predictable, and transparent implementation of the RFS would mitigate RIN market volatility, ultimately encouraging fuel retailers to continue buying, blending and selling more renewable fuel.

Tiffany Wlazlowski Neuman

Tiffany Wlazlowski Neuman develops and executes communications strategies to advance NATSO’s public relations and advocacy goals. Tiffany also develops and oversees partnerships related to the NATSO Foundation’s public outreach initiatives. Tiffany lives in the D.C. metro area with her husband and their two sons.More